Underdog Fantasy is changing the format of its most popular daily fantasy sports game in California, the latest operator adjusting to increased legal scrutiny in the state.
On Wednesday afternoon, Underdog changed its California DFS pick’em games to a peer-to-peer format. The shift comes two weeks after California Attorney General Rob Bonta issued a long-anticipated opinion declaring daily fantasy sports illegal under state law.
Underdog’s main competitor PrizePicks converted to a peer-to-peer model in California earlier this month.
Peer-to-peer California DFS
Under the new “Champions” format, players pay an entry fee to compete against each other for a pooled prize. That replaces the traditional pick’em format where users select multiple player stat lines and wager against Underdog in exchange for a fixed payout.
Underdog launched Champions in January 2024 as a way to offer a product in states that were opposed to their existing pick’em offerings. California is the 20th state where Champions is available.
It remains unclear whether the updated offering will satisfy California officials. The attorney general’s opinion on daily fantasy sports is non-binding and does not carry the force of law, though it may influence future litigation or policy decisions.
“We brought the peer to peer Pick’em game type to the industry, and have now launched our Champions game in 20 states,” an Underdog spokesperson said in a statement. “We expect California fans will love playing, which is what we have seen in every other state.”
Enforcement remains uncertain
Before the opinion was made public, Underdog filed a lawsuit in seeking to block its release. A Sacramento Superior Court judge denied the request, noting that AG opinions are given weight when there is no controlling authority, but they are not binding and do not change the law.
Whether Bonta’s office takes further action remains to be seen. No California court has ruled on the legality of DFS contests under state law. The attorney general’s opinion does not carry legal force, and the state has not issued cease-and-desist orders.
Other states have responded differently to similar opinions. In Texas, a 2016 AG opinion found that DFS contests violate gambling laws, but operators like DraftKings continue to serve the state.
